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Informist, Thursday, Sept. 10, 2026

 

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--Govt official: Sugar industry must look beyond ethanol to other pdts 
--Govt official: Higher sugar prices Aug led to perception of higher demand 
--Govt official: Real Aug offtake limited, not supporting high sugar prices 
--Govt official: Will revise sugar balance sheet monthly for better policies 
--Govt official: Sugar mills must report accurate output, sales to govt 
--Govt official: Will ensure sugar prices are reasonable during festival season 
--Govt official: Mills must ensure adequate sugar supply during festivals 
--Govt official: Mills sought to import about 800,000 tn raw sugar 
--Govt official: To start obtaining sugar yield data monthly from October 
 

 

NEW DELHI – The government has asked sugar mills to ensure there is no scope for artificial scarcity or speculation in the market and that sugar prices remain stable at affordable levels during the festival season. Ashwini Srivastava, joint secretary (sugar) in the Department of Food and Public Distribution, said the rise in sugar prices to record highs in August was not driven by underlying physical demand, and a slew of government interventions has brought prices down.

 

Ex-mill prices in August may have created an "impression of strong underlying demand" in the domestic market, he said. But a closer look showed that the actual physical volume of sugar sales in August was "relatively limited," and prices surged on "expectations of higher prices during the upcoming festive season," Srivastava said at the Indian Sugar & Bio-Energy Manufacturers Association's India Sugar & Bio-Energy conference.

 

Sugar prices had rallied since July, but rose sharply in August amid speculation that stocks could tighten by October, prompting panic buying ahead of the festival season. Ex-mill prices rose to INR 6,000-6,400 per 100 kg in August from INR 4,600-4,800 in July. To keep prices in check, the government imposed stock limits on sugar traders and bulk consumers, allowed mills to import raw sugar at nil duty, and granted export-oriented port-based refineries a one-time conversion to divert some refined sugar to domestic markets.

 

Though ex-mill prices have started easing, Srivastava stressed that prices must remain at affordable levels in the coming months, particularly in October and November. Every stakeholder, sugar mills, traders, bulk consumers and other market participants, has to "act responsibly" and ensure sugar prices remain within an equilibrium, he said, adding that "sugar mills hold the primary responsibility" of keeping prices stable, as price changes start from factory gates.

 

To keep prices and government policies aligned with actual demand-supply fundamentals, the official said, the food department will track and revise sugar production data every month from October onwards. "To improve the accuracy and reliability of projected sugar output and sugar production data, the government will now obtain additional information on sugarcane yields every month beginning from October... We will revise sugar production data every month for informed policy decisions."

 

Meanwhile, of the 1-million-tonne duty-free raw sugar import through tariff rate quota, mills have applied for nearly 800,000 tonnes in the first window. However, actual imports will depend on how attractive global sugar prices are for importing. ISMA Director General Deepak Ballani said that though domestic sugar prices are currently declining, improved import parity may emerge in the coming weeks amid volatile global sugar prices. Wednesday, sugar prices in Uttar Pradesh markets were above INR 5,000, while in Maharashtra they were around INR 4,650-INR 4,850 per 100 kg. In Karnataka, prices were around INR 4,700-INR 4,900, and in Tamil Nadu, they were INR 4,630-INR 4,800 per 100 kg, according to traders.

 

To durably boost sugar supplies to meet peak demand, the government has asked mills to advance 2026-27 sugarcane crushing operations to mid-October. "Last year, sugar crushing commenced in the last week of October. This year, we are planning to commence crushing from 15th October." Festivals such as Ganesh Chaturthi and Krishna Janmashtami fall in September. Demand is expected to peak ahead of Navratri, Durga Puja, and Dussehra in October, followed by Diwali and Chhath Puja in November.

 

He also asked mills to cooperate and ensure accurate, transparent reporting of stock levels, sales, and dispatches to the government. Though mills' financial strength is essential to ensure timely payments to sugarcane farmers, Srivastava said prices must "ultimately be supported by market fundamentals". For the current sugar season, mills have paid approximately 1.11 trillion, or cleared 97% of the total sugarcane dues to farmers, he added. 

 

Srivastava said the long-term sustainability of the sugar industry will depend significantly on improved cane productivity and diversification of sugar. "The growth of ethanol is an important part of this transformation, but we must now look beyond ethanol. There are opportunities in bagasse, compressed biogas, bio-rich chemicals, organic fertilisers, and other value-added products."  End

 

Reported by Afra Abubacker

Edited by Saji George Titus

 

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